Title
A Resolution authorizing the use of a Possession and Use Agreement and Eminent Domain to acquire real property and a temporary construction easement, on real property owned by 7-ELEVEN, Inc. using PPRTA funds for the Dublin Boulevard Improvements - Peterson Road to Marksheffel Road Project
Presenter:
Gayle Sturdivant, PE, PMP, City Engineer/Deputy Public Works Director
Kellie Billingsley, Real Estate Services Manager
Body
Summary:
Resolution would authorize the use of possession and use agreements and/or eminent domain to acquire real property and a temporary construction easement from 7-ELEVEN Inc (the “Property Owner”) needed in connection with the Dublin Boulevard Improvements - Peterson Road to Marksheffel Road Project (“Project”). The Project and property acquisition would be funded by the Pikes Peak Rural Transportation Authority (“PPRTA”).
Background:
The Project was identified by the PPRTA as an “A-list” priority project. The PPRTA committed funding for the Project, which commenced construction in May 2023, and is anticipated to be completed in December 2026.
The City seeks to acquire approximately 0.022 acres (960 square feet) in fee simple for permanent right-of-way and approximately 0.032 acres (1,408 square feet) for a temporary construction easement (collectively, the “Property”) needed for the Project from a Property Owner. The Property is located at 6495 Issaquah Drive and is located at the southeast corner of Dublin Boulevard and Issaquah Drive. Acquisition of this Property is necessary to support planned Project improvements and related public infrastructure.
The City provided the Property Owner with a Notice of Intent to Acquire the Property on February 11, 2025. It was subsequently sent to the Corporation’s registered agent on March 7, 2025. Pursuant to Chapter 9 of The City of Colorado Springs Procedure Manual for the Acquisition and Disposition of Real Property Interests, Revised 2021 (“RES Manual”), the City secured an independent appraisal and presented the Property Owner with an offer to acquire the Property in the amount of $37,450 on May 6, 2025.
The City provided the Property Owner with a final offer to acquire in the amount of $37,450 on June 6, 2025.
The Owner has not provided the City with an independent appraisal nor a counteroffer.
Negotiations with the Property Owner with respect to the required Property are at an impasse. The Property Owner has indicated that the offer is within its internal review and has not provided a timeframe to which a response can be expected. The Project is in construction and further delays to acquire the Property would negatively impact construction.
Staff requests that City Council approve the Resolution for acquisition of the Property through the use of Possession and Use Agreements and/or Eminent Domain. Additionally, the attached Resolution authorizes the City’s Real Estate Services Manager and the Public Works Director to execute all documents necessary to acquire the Property. In all cases, the Property Owner will be compensated for the Property needed for the Project.
Previous Council Action:
On August 23, 2022, City Council endorsed the extension of the Pikes Peak Rural Transportation Authority Capital Program in Resolution No. 121-22. Subsequently, on November 8, 2022, the citizens approved Ballot Issue 5A extending the PPRTA Capital Program until December 31, 2034, and the issue included this Project.
Financial Implications:
The Project is funded by PPRTA and accounted for in the budget.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
The Property Owner has been engaged with the Project throughout the engineering phase and property acquisition phase.
Alternatives:
City Council may approve, modify, or deny approval of the Resolution.
Recommended Action
Proposed Motion:
Move to approve a resolution authorizing the use of eminent domain to acquire the Property needed for the Dublin Boulevard Improvements - Peterson to Marksheffel Road Project
Summary of Ordinance Language
N/A